Source: Ron Recinto at The Lookout (24 minutes ago).
So, it is done – as it was also informed by us on Tech LineUp on May 19 that an agreement between Yahoo and the Alibaba Group is expected to be taken place on or before Monday which would be aimed at to unlock the part of $7+ billion Yahoo investment in Alibaba. So, it is done by Levinsohn, the new interim CEO of Yahoo. The news about the agreement had sent the YHOO, the Yahoo stock, up by 6.7% on Friday.
Describing the plan, Ron Recinto at Lookout – the yahoo news blog – told that as per agreement, Alibaba would buyback up to one-half of Yahoo’s current stake in Alibaba – the full amount for the total Yahoo share at Alibab Group may be above $7 billion.
Both the companies have agreed to set up a framework to monetize the remaining half of interest in the China-based IT Group and also agreed to:
- To set up an appropriate time for the initial public offering in the future
- Alibaba agreed to either repurchase the remaining half of Yahoo stake at the IPO price
- Or Yahoo will be allowed to sell the remaining shares at the IPO to monetize its share
- Yahoo will have the option to sell out its shares at Alibaba at any time it chooses.
Thanking the Jack Ma, Joe Tsai and the other members of Alibaba team, Ross Levinsohn, the Yahoo interim CEO, intends to continue Yahoo collaboration with the Alibaba Group and to explore joint opportunities.
While Jack Ma, Chairman and Chief Executive Officer of Alibaba Group said that this agreement has opened up new venues of relationship and wishes to continue working with Ross Levinsohn and the Yahoo.
So, it is evident now that Yahoo, led by Ross Levinsohn, is on the Path of Financial Recovery after the departure of the Scott Thompson, the previous CEO of Yahoo who was ousted on the charges of false degree as well on the health grounds.
We, the long consumer of Yahoo, congratulate Ross Levinsohn and his Team on the agreement, and wish them success in their struggle to come out of the high seas of the problems.
Source: The Lookout